Treasury Current Value of Funds Rate

AGENCY:

Financial Management Service, Fiscal Service, Treasury.

ACTION:

Notice of rate for use in Federal debt collection and discount and rebate evaluation.

SUMMARY:

Pursuant to Section 11 of the Debt Collection Act of 1982 (31 U.S.C. 3717), the Secretary of the Treasury is responsible for computing and publishing the percentage rate to be used in assessing interest charges for outstanding debts on claims owed the Government. Treasury's Cash Management Regulations (I TFM 6-8000) prescribe use of this rate by agencies as a comparison point in evaluating the cost-effectiveness of a cash discount. In addition, 5 CFR part 1315.8 of the Prompt Payment rule on “Rebates” requires that this rate be used in determining when agencies should pay purchase card invoices when the card issuer offers a rebate. Notice is hereby given that the applicable rate is 5 percent for calendar year 2002.

DATES:

The rate will be in effect for the period beginning on January 1, 2002 and ending on December 31, 2002.

FOR FURTHER INFORMATION CONTACT:

Inquiries should be directed to the Risk Management Division, Financial Management Service, Department of the Treasury, 401 14th Street, SW, Washington, DC 20227 (Telephone: 202) 874-6650).

SUPPLEMENTARY INFORMATION:

The rate reflects the current value of funds to the Treasury for use in connection with Federal Cash Management systems and is based on investment rates set for purposes of Pub. L. 95-147, 91 Stat. 1227. Computed each year by averaging investment rates for the 12-month period ending, every September 30 for applicability effective January 1, the rate is subject to quarterly revisions if the annual average, on a moving basis, changes by 2 per centum. The rate is effect for the calendar year 2002 reflects the average investment rates for the 12-month period that ended September 30, 2001.